Barry Dolowich: Young adults and credit card debt

Q: A while back, I read a column you wrote about the dangers of college student credit cards and telling the story of a student getting buried in debt. I remember laughing to myself and blaming the parents. I am no longer laughing as I just discovered that my little princess has racked up $2,000 in charges on a card I had no knowledge she possessed. For the benefit of other parents, can you please run that column again?

A: Education as to the dangers of abusing her credit card may have prevented her current debt situation. Unfortunately, like many adults, she is learning the hard way.

When my children turned 18, the flood of credit card solicitations began. Perhaps I was na?ve to be so appalled at the blatant attempts to introduce them to a life of debt by offering them all kinds of "money-back bonuses" and free calculators, pens, etc.

As many of us adults have discovered, acquiring credit debt is far easier than paying it off. It is so much fun to buy and charge, buy and charge, buy and charge, and so on.

However, it is so painful when the credit card bill comes in the mail. Having the willpower and the ability not to spend above our means generally is an emotional function and not an intellectual one.

In other words, even the most intelligent people among us find themselves buried in credit card debt because they cannot resist the emotional temptation to buy something now. Having said this, do you trust your daughter of 18 to have the emotional strength to resist whipping out her credit card every time she sees something she just has to have?

Obviously, you can arrange with your daughter to "control" the card for the purposes of establishing future credit. However, do not forget to educate her. Unfortunately, our high schools do not offer classes on personal finance and the dangers of acquiring and controlling credit card debt. Most of us learn the hard way — when it is too late and we are already in over our heads in debt.

For those parents reading today's column, please make the effort to educate your children about credit card debt and the interest factor. This will be time well spent. Remember, if your child gets into debt, who do you think he or she will turn to for help? That's right, you!

Barry Dolowich is a certified public accountant in Monterey. He can be reached at 372-7200, P.O. Box 710, Monterey 93942-0710 or bdolowich@gmail.com.